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Third Party DLLs with C# setup project

Hello all -
I have the following scenario:
Third party component installed on development machine. C# project that references the third party dll. In the setup project, under detected dependences, it shows the DLL, but it also shows a corresponding Interop dll.

The C# app is being installed on a system that will already have the third party component installed. With this in mind, does the setup project need to include the DLL and Interop DLL? If yes, does one or both need to be registered? If it needs to be registered, which register type does it require? (Register property in setup project for the dll).

When the setup is installed on the target machine, it cannot find the third party dlls.